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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2024-04-01 and last amended on 2024-01-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Definitions

  •  (1) In this section,

    relation

    relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

    single unit residential complex

    single unit residential complex includes

    • (a) a multiple unit residential complex that does not contain more than two residential units, and

    • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

  • Marginal note:New housing rebate

    (2) Where

    • (a) a builder of a single unit residential complex or a residential condominium unit makes a taxable supply by way of sale of the complex or unit to a particular individual,

    • (b) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the complex or unit entered into between the builder and the particular individual, the particular individual is acquiring the complex or unit for use as the primary place of residence of the particular individual or a relation of the particular individual,

    • (c) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or unit or for any other taxable supply to the particular individual of an interest in the complex or unit, is less than $450,000,

    • (d) the particular individual has paid all of the tax under Division II payable in respect of the supply of the complex or unit and in respect of any other supply to the individual of an interest in the complex or unit (the total of which tax under subsection 165(1) is referred to in this subsection as the “total tax paid by the particular individual”),

    • (e) ownership of the complex or unit is transferred to the particular individual after the construction or substantial renovation thereof is substantially completed,

    • (f) after the construction or substantial renovation is substantially completed and before possession of the complex or unit is given to the particular individual under the agreement of purchase and sale of the complex or unit

      • (i) in the case of a single unit residential complex, the complex was not occupied by any individual as a place of residence or lodging, and

      • (ii) in the case of a residential condominium unit, the unit was not occupied by an individual as a place of residence or lodging unless, throughout the time the complex or unit was so occupied, it was occupied as a place of residence by an individual, or a relation of an individual, who was at the time of that occupancy a purchaser of the unit under an agreement of purchase and sale of the unit, and

    • (g) either

      • (i) the first individual to occupy the complex or unit as a place of residence at any time after substantial completion of the construction or renovation is

        • (A) in the case of a single unit residential complex, the particular individual or a relation of the particular individual, and

        • (B) in the case of a residential condominium unit, an individual, or a relation of an individual, who was at that time a purchaser of the unit under an agreement of purchase and sale of the unit, or

      • (ii) the particular individual makes an exempt supply by way of sale of the complex or unit and ownership thereof is transferred to the recipient of the supply before the complex or unit is occupied by any individual as a place of residence or lodging,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

    • (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and

    • (i) where the total consideration is more than $350,000 but less than $450,000, the amount determined by the formula

      A × [($450,000 - B)/$100,000]

      where

      A
      is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and
      B
      is the total consideration.
  • Marginal note:Owner-occupant of a residential unit

    (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

    • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

    • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

  • Marginal note:Relevant transfer date

    (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a residential complex that is supplied to the particular individual referred to in that subsection is the earlier of the day on which ownership of the complex is transferred to the particular individual and the day on which possession of the complex is transferred to the particular individual under the agreement for the supply.

  • Marginal note:Rebate in Nova Scotia

    (2.1) If

    • (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, for use, in Nova Scotia, as the primary place of residence of the particular individual or of a relation of the particular individual, or the particular individual would be so entitled if the total consideration (within the meaning of paragraph (2)(c)) in respect of the complex were less than $450,000,

    • (b) it is the case that

      • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or

      • (ii) on the last day on which any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

    • (c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and the amount determined by the formula

    A × B

    where

    A
    is 18.75%; and
    B
    is the total of all tax under subsection 165(2) payable in respect of the supply of the complex to the particular individual and in respect of any other supply to the particular individual of an interest in the complex.
  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of a residential complex or residential condominium unit shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual.

  • Marginal note:Application to builder

    (4) Where

    • (a) the builder of a single unit residential complex or a residential condominium unit has made a taxable supply of the complex or unit by way of sale to an individual and has transferred ownership of the complex or unit to the individual under the agreement for the supply,

    • (b) tax under Division II has been paid, or is payable, by the individual in respect of the supply,

    • (c) the individual, within two years after the day ownership of the complex or unit is transferred to the individual under the agreement for the supply, submits to the builder in prescribed manner an application in prescribed form containing prescribed information for the rebate to which the individual would be entitled under subsection (2) or (2.1) in respect of the complex or unit if the individual applied therefor within the time allowed for such an application,

    • (d) the builder agrees to pay or credit to or in favour of the individual any rebate under this section that is payable to the individual in respect of the complex, and

    • (e) the tax payable in respect of the supply has not been paid at the time the individual submits an application to the builder for the rebate and, if the individual had paid the tax and made application for the rebate, the rebate would have been payable to the individual under subsection (2) or (2.1), as the case may be,

    the builder may pay or credit the amount of the rebate, if any, to or in favour of the individual.

  • Marginal note:Forwarding of application by builder

    (5) Notwithstanding subsections (2) to (3), where an application of an individual for a rebate under this section in respect of a single unit residential complex or a residential condominium unit is submitted under subsection (4) to the builder of the complex or unit,

    • (a) the builder shall transmit the application to the Minister with the builder’s return filed under Division V for the reporting period in which the rebate was paid or credited; and

    • (b) interest under subsection 297(4) is not payable in respect of the rebate.

  • Marginal note:Joint and several liability

    (6) If the builder of a single unit residential complex or a residential condominium unit pays or credits a rebate to or in favour of an individual under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 109
  • 1997, c. 10, ss. 63, 221
  • 2000, c. 12, s. 113
  • 2001, c. 15, s. 12
  • 2006, c. 4, s. 24
  • 2007, c. 18, s. 37, c. 35, s. 188
  • 2017, c. 33, s. 137(E)

Marginal note:Definitions

  •  (1) In this section,

    long-term lease

    long-term lease, in respect of land, means a lease, licence or similar arrangement under which continuous possession of the land is provided for a period of at least twenty years or a lease, licence or similar arrangement that contains an option to purchase the land; (bail de longue durée)

    relation

    relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

    single unit residential complex

    single unit residential complex includes

    • (a) a multiple unit residential complex that does not contain more than two residential units, and

    • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

  • Marginal note:New housing rebate for building only

    (2) Where

    • (a) under an agreement entered into between a particular individual and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the builder makes to the particular individual

      • (i) one or more exempt supplies under a long-term lease of, or a supply by way of an assignment of a long-term lease of, the land attributable to the complex, and

      • (ii) an exempt supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is situated,

    • (b) at the time the particular individual becomes liable or assumes liability under the agreement, the particular individual is acquiring the complex for use as the primary place of residence of the particular individual or of a relation of the particular individual,

    • (c) the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement, is less than $472,500,

    • (d) the builder is deemed under subsection 191(1) or (3) to have made a supply of the complex as a consequence of giving possession of the complex to the particular individual under the agreement,

    • (e) possession of the complex is given to the particular individual after the construction or substantial renovation of it is substantially completed,

    • (f) after the construction or substantial renovation is substantially completed and before possession of the complex is given to the particular individual under the agreement, the complex was not occupied by any individual as a place of residence or lodging, and

    • (g) either

      • (i) the first individual to occupy the complex as a place of residence after substantial completion of the construction or substantial renovation is the particular individual or a relation of the particular individual, or

      • (ii) the particular individual makes an exempt supply by way of sale or assignment of the whole of the particular individual’s interest in the complex and possession of the complex is transferred to the recipient of the supply before the complex is occupied by any individual as a place of residence or lodging,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

    • (h) if the fair market value referred to in paragraph (c) is not more than $367,500, an amount equal to 1.71% of the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable by the particular individual to the builder for the supply by way of sale to the particular individual of the building or part of a building referred to in paragraph (a) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and

    • (i) if the fair market value referred to in paragraph (c) is more than $367,500 but less than $472,500, the amount determined by the formula

      A × [($472,500 - B)/$105,000]

      where

      A
      is the lesser of $6,300 and 1.71% of the total consideration, and
      B
      is the fair market value referred to in paragraph (c).
  • Marginal note:Owner-occupant of a residential unit

    (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

    • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

    • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

  • Marginal note:Relevant transfer date

    (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a complex supplied to the particular individual referred to in that subsection is the day on which possession of the complex is transferred to the particular individual.

  • Marginal note:Rebate in Nova Scotia

    (2.1) If

    • (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $472,500,

    • (b) it is the case that

      • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or

      • (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

    • (c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration (within the meaning of paragraph (2)(h)) in respect of the complex.

  • Marginal note:Exception

    (2.2) A rebate under this section shall not be paid in respect of a residential complex where the builder of the complex is not required, because of an Act of Parliament (other than this Act) or any other law, to pay or remit the tax that the builder is deemed to have paid and collected under subsection 191(1) in respect of a supply of the complex deemed to have been made under that subsection.

  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate within two years after the day possession of the complex is transferred to the individual.

  • Marginal note:Application to builder

    (4) Where

    • (a) the builder of a residential complex that is a single unit residential complex or a residential condominium unit makes a supply of the complex to an individual under an agreement referred to in paragraph (2)(a) and transfers possession of the complex to the individual under the agreement,

    • (b) the individual, within two years after the day possession of the complex is transferred to the individual under the agreement for the supply, submits to the builder in prescribed manner an application in prescribed form containing prescribed information for the rebate to which the individual would be entitled under subsection (2) or (2.1) in respect of the complex if the individual applied for it within the time allowed for such an application, and

    • (c) the builder agrees to pay to, or credit in favour of, the individual any rebate under this section that is payable to the individual in respect of the complex,

    the builder may pay to, or credit in favour of, the individual the amount of the rebate, if any.

  • Marginal note:Forwarding of application by builder

    (5) Notwithstanding subsections (2) and (3), where an application of an individual for a rebate under this section in respect of a residential complex is submitted under subsection (4) to the builder of the complex,

    • (a) the builder shall transmit the application to the Minister with the builder’s return filed under Division V for the reporting period in which the rebate was paid or credited; and

    • (b) interest under subsection 297(4) is not payable in respect of the rebate.

  • Marginal note:Joint and several liability

    (6) If the builder of a residential complex pays or credits a rebate under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 110
  • 1997, c. 10, ss. 64, 222
  • 2000, c. 12, s. 113, c. 30, s. 72
  • 2001, c. 15, s. 13
  • 2006, c. 4, s. 25
  • 2007, c. 18, s. 38, c. 35, s. 189
  • 2017, c. 33, s. 138(E)
 

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